While the growth of closed-end funds (CEFs) is slowing, banks and insurers seem to perceive CEFs as attractive investments in the current low-interest rate environment.
According to Fitch Ratings, banks and insurance companies have increased financing to municipal and taxable CEFs to $46.9 billion, which is up from $14.9 billion in 2007. The funds were used primarily to refinance funds' auction-rate preferred shares (ARPS) and increase leverage in taxable funds starting in 2009.
Register or login for access to this item and much more
All Digital Insurance content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access